Power To Gas Market
Power-to-Gas Market Forecasts to 2030 - Global Analysis By Technology (Electrolysis and Methanation), Application (Residential, Commercial and Industrial), End User (Transportation, Chemical Production, Steel Industry and Other End Users) and By Geography
According to Stratistics MRC, the Global Power-to-Gas Market is accounted for $39.75 billion in 2024 and is expected to reach $90.05 billion by 2030 growing at a CAGR of 14.6% during the forecast period. Power-to-Gas (PtG) is an innovative technology that converts surplus electrical energy, primarily from renewable sources like wind and solar, into gaseous fuels, typically hydrogen or methane. This process addresses the intermittency of renewable energy generation by storing excess power for later use. In PtG, electricity is used to electrolyze water, splitting it into hydrogen and oxygen. The hydrogen can be stored or further processed with carbon dioxide (captured from the atmosphere or industrial sources) to produce synthetic methane through a process called methanation. This synthetic gas can be injected into existing natural gas grids, utilized in fuel cells, or used for heating.
According to the International Energy Agency, electrolyze stacks represent between 50 and 60 percent of the capital investment. The remaining 40 to 50 percent of the investment is made up of components for the plant, power electronics, and gas conditioning.
Market Dynamics:
Driver:
Increasing awareness of climate change
The increasing awareness of climate change is significantly boosting the Power-to-Gas (P2G) technology, which converts excess renewable energy into hydrogen or synthetic natural gas. As nations strive to reduce greenhouse gas emissions, P2G offers a viable solution to harness surplus electricity generated from wind and solar power. This process not only addresses the intermittency of renewable energy but also provides a means to store and transport energy efficiently. Furthermore, by producing hydrogen, P2G enables the decarbonization of various sectors, including transportation and industrial processes, which are traditionally reliant on fossil fuels.
Restraint:
Integration challenges
Power-to-Gas (P2G) technology, which converts surplus renewable energy into hydrogen or synthetic natural gas, faces significant integration challenges that hinder its widespread adoption. One primary issue is the intermittent nature of renewable energy sources like wind and solar, which can lead to inconsistent hydrogen production. Existing energy infrastructure, including pipelines and storage facilities, is often not optimized for hydrogen transport and storage, requiring costly upgrades. The lack of regulatory frameworks and market structures that support P2G systems further complicates integration, as stakeholders may be unsure about investment returns.
Opportunity:
Hydrogen economy development
The hydrogen economy is significantly advancing the Power-to-Gas (P2G) technology, which converts excess electricity—often generated from renewable sources like wind and solar—into hydrogen through electrolysis. This process allows for the storage and transportation of renewable energy, effectively addressing the intermittency issues associated with renewable power generation. By producing hydrogen, P2G can facilitate the integration of renewables into the energy grid, providing a clean fuel alternative for various applications, including transportation, heating, and industrial processes. Moreover, hydrogen can be converted back into electricity or utilized in fuel cells, enhancing energy efficiency and reducing greenhouse gas emissions.
Threat:
Initial investment for P2G technology
Power-to-Gas (P2G) technology, which converts excess renewable energy into hydrogen or methane for storage and later use, faces significant hurdles due to high initial investment costs. The infrastructure required for P2G systems—such as electrolysis units, gas storage facilities, and integration with existing gas networks—demands substantial capital outlay. This financial barrier discourages investors and utilities, particularly in a market where cheaper energy solutions are prevalent. The long payback periods associated with P2G projects make them less attractive compared to traditional energy investments. While P2G has the potential to enhance energy security and support decarbonization efforts, its adoption is stymied by the economic uncertainties surrounding initial costs and the need for government incentives or policy support to foster development.
Covid-19 Impact:
The COVID-19 pandemic significantly impacted the Power-to-Gas (PtG) sector, highlighting both vulnerabilities and opportunities within the energy landscape. Initially, lockdowns and reduced industrial activity led to a decline in energy demand, disrupting the operational stability of PtG projects that rely on consistent electricity supply. Supply chain interruptions affected the availability of critical components for electrolyzers and other technologies essential for hydrogen production. However, the crisis also accelerated interest in sustainable energy solutions, as governments and industries sought to bolster resilience against future disruptions.
The Electrolysis segment is expected to be the largest during the forecast period
Electrolysis segment is expected to dominate the largest share over the estimated period. During electrolysis, electricity is used to split water molecules into hydrogen and oxygen, generating hydrogen that can be stored or utilized as an energy carrier. This is particularly beneficial in integrating renewable energy sources like wind and solar, which often produce more energy than the grid can handle. By converting excess electricity into hydrogen, P2G helps balance supply and demand, ensuring a more stable energy system. The hydrogen produced can be used directly as a fuel, injected into natural gas networks, or converted into synthetic methane through further chemical processes. This not only facilitates energy storage but also contributes to decarbonizing the gas supply and transportation sectors, thus promoting a more sustainable and resilient energy future.
The Steel Industry segment is expected to have the highest CAGR during the forecast period
Steel Industry segment is estimated to grow at a rapid pace during the forecast period as a sustainable solution to reduce carbon emissions and enhance energy efficiency. PtG involves converting surplus renewable energy, often generated from wind or solar sources, into hydrogen through electrolysis. This hydrogen can then be used in steel production, replacing traditional carbon-intensive methods that rely on coke. By integrating PtG, steelmakers can significantly lower their carbon footprint, as hydrogen serves as a cleaner alternative to fossil fuels. Additionally, the flexibility of PtG allows for the storage of excess renewable energy, addressing intermittency issues in energy supply. As global demand for green steel rises, the integration of PtG not only aligns with environmental regulations and corporate sustainability goals but also positions steel companies to remain competitive in a rapidly evolving market.
Region with largest share:
North America region is poised to hold the largest share of the market throughout the extrapolated period. Integration with carbon markets is substantially enhancing the Power-to-Gas (P2G) sector in North America by providing a financial mechanism to support the development and deployment of green hydrogen technologies. By linking these systems to carbon markets, developers can monetize carbon credits for the greenhouse gas emissions they mitigate, creating a compelling economic incentive. This integration encourages investment in renewable energy projects and infrastructure, driving down costs and increasing the scalability of hydrogen production.
Region with highest CAGR:
Europe region is estimated to witness the highest CAGR during the projected time frame. By establishing clear frameworks and incentives, regulations promote investment in PtG technologies, which convert excess renewable electricity into hydrogen or synthetic natural gas. This process not only aids in energy storage and balancing the grid but also facilitates the decarbonization of various sectors, including transportation and heating. European policies, such as the Green Deal and Fit for 55, aim to reduce greenhouse gas emissions and promote hydrogen as a key energy carrier.
Key players in the market
Some of the key players in Power-to-Gas market include Avacon AG, Cummins Inc, Fortescue Metals Group, FuelCell Energy Inc, Hitachi Zosen Inova AG, MAN Energy Solutions, Siemens Energy AG, Sunfire GmbH and Thyssenkrupp AG.
Key Developments:
In November 2023, Nature Energy and Andel inaugurated a new power-to-gas facility in Denmark, following a partnership established in autumn 2022. The two companies have invested in a biological Power-to-X plant located in Glansager on Als, which is now ready for production. Once fully operational, the plant will produce hydrogen that will enhance Nature Energy's green gas output by 12,000 m³ per day.
In June 2022, the U.S. Department of Energy invested US$ 504.4 million in finance Advanced Clean Energy Storage, a clean energy and clean hydrogen storage facility that can provide long-term energy storage.
In February 2022, Mitsubishi Power and HydrogenPro have a purchase agreement in place for a substantial electrolyzer system. Through electrolysis, the HydrogenPro electrolyzer system will create green hydrogen and oxygen using wind and solar energy.
Technologies Covered:
• Electrolysis
• Methanation
Applications Covered:
• Residential
• Commercial
• Industrial
End Users Covered:
• Transportation
• Chemical Production
• Steel Industry
• Other End Users
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Technology Analysis
3.7 Application Analysis
3.8 End User Analysis
3.9 Emerging Markets
3.10 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Power-to-Gas Market, By Technology
5.1 Introduction
5.2 Electrolysis
5.3 Methanation
6 Global Power-to-Gas Market, By Application
6.1 Introduction
6.2 Residential
6.3 Commercial
6.4 Industrial
7 Global Power-to-Gas Market, By End User
7.1 Introduction
7.2 Transportation
7.3 Chemical Production
7.4 Steel Industry
7.5 Other End Users
8 Global Power-to-Gas Market, By Geography
8.1 Introduction
8.2 North America
8.2.1 US
8.2.2 Canada
8.2.3 Mexico
8.3 Europe
8.3.1 Germany
8.3.2 UK
8.3.3 Italy
8.3.4 France
8.3.5 Spain
8.3.6 Rest of Europe
8.4 Asia Pacific
8.4.1 Japan
8.4.2 China
8.4.3 India
8.4.4 Australia
8.4.5 New Zealand
8.4.6 South Korea
8.4.7 Rest of Asia Pacific
8.5 South America
8.5.1 Argentina
8.5.2 Brazil
8.5.3 Chile
8.5.4 Rest of South America
8.6 Middle East & Africa
8.6.1 Saudi Arabia
8.6.2 UAE
8.6.3 Qatar
8.6.4 South Africa
8.6.5 Rest of Middle East & Africa
9 Key Developments
9.1 Agreements, Partnerships, Collaborations and Joint Ventures
9.2 Acquisitions & Mergers
9.3 New Product Launch
9.4 Expansions
9.5 Other Key Strategies
10 Company Profiling
10.1 Avacon AG
10.2 Cummins Inc
10.3 Fortescue Metals Group
10.4 FuelCell Energy Inc
10.5 Hitachi Zosen Inova AG
10.6 MAN Energy Solutions
10.7 Siemens Energy AG
10.8 Sunfire GmbH
10.9 Thyssenkrupp AG
List of Tables
1 Global Power-to-Gas Market Outlook, By Region (2022-2030) ($MN)
2 Global Power-to-Gas Market Outlook, By Technology (2022-2030) ($MN)
3 Global Power-to-Gas Market Outlook, By Electrolysis (2022-2030) ($MN)
4 Global Power-to-Gas Market Outlook, By Methanation (2022-2030) ($MN)
5 Global Power-to-Gas Market Outlook, By Application (2022-2030) ($MN)
6 Global Power-to-Gas Market Outlook, By Residential (2022-2030) ($MN)
7 Global Power-to-Gas Market Outlook, By Commercial (2022-2030) ($MN)
8 Global Power-to-Gas Market Outlook, By Industrial (2022-2030) ($MN)
9 Global Power-to-Gas Market Outlook, By End User (2022-2030) ($MN)
10 Global Power-to-Gas Market Outlook, By Transportation (2022-2030) ($MN)
11 Global Power-to-Gas Market Outlook, By Chemical Production (2022-2030) ($MN)
12 Global Power-to-Gas Market Outlook, By Steel Industry (2022-2030) ($MN)
13 Global Power-to-Gas Market Outlook, By Other End Users (2022-2030) ($MN)
14 North America Power-to-Gas Market Outlook, By Country (2022-2030) ($MN)
15 North America Power-to-Gas Market Outlook, By Technology (2022-2030) ($MN)
16 North America Power-to-Gas Market Outlook, By Electrolysis (2022-2030) ($MN)
17 North America Power-to-Gas Market Outlook, By Methanation (2022-2030) ($MN)
18 North America Power-to-Gas Market Outlook, By Application (2022-2030) ($MN)
19 North America Power-to-Gas Market Outlook, By Residential (2022-2030) ($MN)
20 North America Power-to-Gas Market Outlook, By Commercial (2022-2030) ($MN)
21 North America Power-to-Gas Market Outlook, By Industrial (2022-2030) ($MN)
22 North America Power-to-Gas Market Outlook, By End User (2022-2030) ($MN)
23 North America Power-to-Gas Market Outlook, By Transportation (2022-2030) ($MN)
24 North America Power-to-Gas Market Outlook, By Chemical Production (2022-2030) ($MN)
25 North America Power-to-Gas Market Outlook, By Steel Industry (2022-2030) ($MN)
26 North America Power-to-Gas Market Outlook, By Other End Users (2022-2030) ($MN)
27 Europe Power-to-Gas Market Outlook, By Country (2022-2030) ($MN)
28 Europe Power-to-Gas Market Outlook, By Technology (2022-2030) ($MN)
29 Europe Power-to-Gas Market Outlook, By Electrolysis (2022-2030) ($MN)
30 Europe Power-to-Gas Market Outlook, By Methanation (2022-2030) ($MN)
31 Europe Power-to-Gas Market Outlook, By Application (2022-2030) ($MN)
32 Europe Power-to-Gas Market Outlook, By Residential (2022-2030) ($MN)
33 Europe Power-to-Gas Market Outlook, By Commercial (2022-2030) ($MN)
34 Europe Power-to-Gas Market Outlook, By Industrial (2022-2030) ($MN)
35 Europe Power-to-Gas Market Outlook, By End User (2022-2030) ($MN)
36 Europe Power-to-Gas Market Outlook, By Transportation (2022-2030) ($MN)
37 Europe Power-to-Gas Market Outlook, By Chemical Production (2022-2030) ($MN)
38 Europe Power-to-Gas Market Outlook, By Steel Industry (2022-2030) ($MN)
39 Europe Power-to-Gas Market Outlook, By Other End Users (2022-2030) ($MN)
40 Asia Pacific Power-to-Gas Market Outlook, By Country (2022-2030) ($MN)
41 Asia Pacific Power-to-Gas Market Outlook, By Technology (2022-2030) ($MN)
42 Asia Pacific Power-to-Gas Market Outlook, By Electrolysis (2022-2030) ($MN)
43 Asia Pacific Power-to-Gas Market Outlook, By Methanation (2022-2030) ($MN)
44 Asia Pacific Power-to-Gas Market Outlook, By Application (2022-2030) ($MN)
45 Asia Pacific Power-to-Gas Market Outlook, By Residential (2022-2030) ($MN)
46 Asia Pacific Power-to-Gas Market Outlook, By Commercial (2022-2030) ($MN)
47 Asia Pacific Power-to-Gas Market Outlook, By Industrial (2022-2030) ($MN)
48 Asia Pacific Power-to-Gas Market Outlook, By End User (2022-2030) ($MN)
49 Asia Pacific Power-to-Gas Market Outlook, By Transportation (2022-2030) ($MN)
50 Asia Pacific Power-to-Gas Market Outlook, By Chemical Production (2022-2030) ($MN)
51 Asia Pacific Power-to-Gas Market Outlook, By Steel Industry (2022-2030) ($MN)
52 Asia Pacific Power-to-Gas Market Outlook, By Other End Users (2022-2030) ($MN)
53 South America Power-to-Gas Market Outlook, By Country (2022-2030) ($MN)
54 South America Power-to-Gas Market Outlook, By Technology (2022-2030) ($MN)
55 South America Power-to-Gas Market Outlook, By Electrolysis (2022-2030) ($MN)
56 South America Power-to-Gas Market Outlook, By Methanation (2022-2030) ($MN)
57 South America Power-to-Gas Market Outlook, By Application (2022-2030) ($MN)
58 South America Power-to-Gas Market Outlook, By Residential (2022-2030) ($MN)
59 South America Power-to-Gas Market Outlook, By Commercial (2022-2030) ($MN)
60 South America Power-to-Gas Market Outlook, By Industrial (2022-2030) ($MN)
61 South America Power-to-Gas Market Outlook, By End User (2022-2030) ($MN)
62 South America Power-to-Gas Market Outlook, By Transportation (2022-2030) ($MN)
63 South America Power-to-Gas Market Outlook, By Chemical Production (2022-2030) ($MN)
64 South America Power-to-Gas Market Outlook, By Steel Industry (2022-2030) ($MN)
65 South America Power-to-Gas Market Outlook, By Other End Users (2022-2030) ($MN)
66 Middle East & Africa Power-to-Gas Market Outlook, By Country (2022-2030) ($MN)
67 Middle East & Africa Power-to-Gas Market Outlook, By Technology (2022-2030) ($MN)
68 Middle East & Africa Power-to-Gas Market Outlook, By Electrolysis (2022-2030) ($MN)
69 Middle East & Africa Power-to-Gas Market Outlook, By Methanation (2022-2030) ($MN)
70 Middle East & Africa Power-to-Gas Market Outlook, By Application (2022-2030) ($MN)
71 Middle East & Africa Power-to-Gas Market Outlook, By Residential (2022-2030) ($MN)
72 Middle East & Africa Power-to-Gas Market Outlook, By Commercial (2022-2030) ($MN)
73 Middle East & Africa Power-to-Gas Market Outlook, By Industrial (2022-2030) ($MN)
74 Middle East & Africa Power-to-Gas Market Outlook, By End User (2022-2030) ($MN)
75 Middle East & Africa Power-to-Gas Market Outlook, By Transportation (2022-2030) ($MN)
76 Middle East & Africa Power-to-Gas Market Outlook, By Chemical Production (2022-2030) ($MN)
77 Middle East & Africa Power-to-Gas Market Outlook, By Steel Industry (2022-2030) ($MN)
78 Middle East & Africa Power-to-Gas Market Outlook, By Other End Users (2022-2030) ($MN)
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
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